Farmers & Merchants Bancorp (FMCB) reported record financial results for the third quarter of 2026, with net income reaching $25.1 million. This figure represents a $1.4 million increase, or 5.75%, compared to the same period in the prior year. Diluted earnings per common share for the quarter were $36.75, an increase of 8.34% from $33.92 in the third quarter of 2025.
The company achieved an annualized return on average assets of 1.75% and a return on average equity of 14.74% for the quarter. Over the trailing twelve months, basic earnings per common share totaled $144.68, up 10.20% from the previous year.
On the balance sheet, total loans and leases increased by $136.0 million, or 3.77%, to $3.74 billion as of September 30, 2026. Total deposits grew by $85.0 million, or 1.74%, to $5.0 billion over the same period. The company’s loan-to-deposit ratio was 75.70% as of September 30, 2026.
Net interest income for the quarter was $58.3 million, up $2.9 million from the prior year. The net interest margin (tax equivalent basis) was 4.24%. Non-interest income for the third quarter was $6.3 million, while non-interest expense was $35.8 million.
Regarding capital and credit quality, the preliminary total risk-based capital ratio was 16.39%, and the common equity tier 1 ratio was 14.91% as of September 30, 2026. The allowance for credit losses on gross loans and leases stood at 2.06%.
In other corporate actions, the company repurchased 4,714 shares of stock at a cost of $6.7 million during the quarter. The company also paid dividends of $3.6 million in the third quarter of 2026.
